Digby associates can meet your requirements as to how you would like to “meet us” We are happy to visit your home, office or meet via a conference call such as zoom.
Geographically we have clients all over the UK and are happy to travel.
Our qualified advisers are not transactional, they will work closely with you on your financial journey. Yes, you can transact yourself however quality guidance can help ensure that you are not taking unnecessary risks or paying unnecessary tax.
The cost of getting it wrong far outweighs the saving of doing it yourself.
Our role is to ensure that you do not pay any unnecessary tax and you don’t run out of money. Recommending appropriate tax wrappers, investing and insuring appropriately will help us to help you, removing the emotion from your finances.
You ongoing fee pays for the numerous services such as tax planning, fund performance analysis, switching of funds and the opportunity to pick up the phone whenever you need.
There are thousands of funds to choose from, we don’t pretend to be experts so we outsource this to Quilter who have huge resources and intellectual capital.
Their strict due diligence and ongoing monitoring gives us great confidence knowing that the funds we recommend have gone through such a robust process.
Ongoing reviews are at the heart of our business. All the advisers are focussed on working closely with their portfolio of clients. In addition, they are monitored on a monthly basis by senior management for the accuracy and quality of their reviews.
Remember that if you don’t feel you are getting value for money, then you can simply switch it off.
Yes, under auto-enrolment regulations, employers must provide a qualifying workplace pension scheme and automatically enrol eligible employees.
It supports employee well-being, aids in retention, and can reduce costs associated with long-term absences.
Funding can come from life insurance policies taken out on each shareholder, with the proceeds used to buy the shares.
Typically, the payout is a multiple of the employee’s annual salary, such as two to four times their earnings.
The payout is usually tax-free for the beneficiaries, but it’s essential to structure the policy correctly, often using a discretionary trust.
Eligibility criteria are set by the employer and may include all employees or specific groups, such as full-time staff or those with a certain tenure.
Yes, if they have multiple employments offering such benefits, but each policy’s terms should be reviewed to understand coverage limits.
Policies often cover between 50% to 75% of the employee’s gross salary.
Payments usually begin after a deferred period, such as 26 weeks of absence, and can continue until the employee returns to work, reaches retirement age, or for a fixed period.
Payments usually begin after a deferred period, such as 26 weeks of absence, and can continue until the employee returns to work, reaches retirement age, or for a fixed period.
Minimum contribution levels are set by law, with employers and employees each required to contribute a percentage of qualifying earnings.
Yes, employees can choose to opt out after being enrolled, but employers must re-enrol them periodically, typically every three years.
Contributions are usually tax-deductible for employers, and employees receive tax relief on their contributions, enhancing the overall benefit.
The amount typically reflects the value of each shareholder’s stake in the business, often determined by a professional valuation.
Funding can come from life insurance policies taken out on each shareholder, with the proceeds used to buy the shares.
Premiums are usually based on factors like the shareholder’s age, health, and the amount of coverage required.
Estate planning is the process of arranging how your assets (such as property, money, and possessions) will be managed and distributed after your death.
It’s important because it ensures your wishes are followed, reduces inheritance tax liabilities and helps prevent disputes among beneficiaries. It can also include making arrangements for your long term care if you become unable to make decisions yourself.
Yes, having a will is important regardless of the size of your estate. Without a will, your assets will be distributed according to intestacy laws, which may not align with your wishes. A will also allows you to appoint guardians for your children, specify funeral preferences and make charitable donations.
If you lose mental capacity without an LPA in place, your loved ones will need to apply to the Court of Protection to be appointed as your deputy. This process is time-consuming, expensive, and restrictive compared to having an LPA, which allows you to choose a trusted person in advance to manage your affairs if you become unable to do so.
Your financial advisor will complete a thorough fact -inding questionnaire with you during your first meeting and can also advise you of any additional information or documentation they need once they have started to get understand your personal situation, goals and aspirations.
If you do have existing estate planning documents such as wills, trusts and powers of attorney it would be helpful to bring these along with you to the meeting.
You should review your estate plan every 3–5 years or after major life events such as marriage, divorce, having children, or significant financial changes.
An estate plan typically includes a will, trusts, powers of attorney (financial & medical), a letter of wishes, and plans for inheritance tax efficiency.
Yes, you can gift assets before death, and some gifts may be tax-free if you live for at least seven years after making them (known as the seven-year rule). Smaller gifts may also be exempt from inheritance tax.
Yes, leaving money to charity can reduce your inheritance tax bill. If you leave at least 10% of your estate to charity, you may qualify for a reduced inheritance tax rate of 36% instead of the standard 40% on the rest of your estate.
The 7-year rule refers to the exemption of gifts made more than seven years before your death from inheritance tax. If you survive for at least seven years after making a gift, it is generally not subject to IHT. However, gifts made within seven years may be subject to tax, with a tapering relief if you survive between 3 and 7 years.
Yes, you can gift property to your children, but it may be subject to inheritance tax if you die within seven years of the gift. Additionally, the gift may be considered a potentially exempt transfer (PET) and may affect your eligibility for means-tested benefits if it’s seen as depriving you of assets.
Gifts made during your lifetime can reduce the value of your estate for IHT purposes. Some gifts are exempt, such as small annual gifts or gifts to your spouse. If you give a gift and live for at least seven years after giving it, it’s generally exempt from IHT under the seven-year rule.
If inheritance tax is owed on an estate and it’s not paid, HMRC can charge interest and penalties. The tax must be paid within six months of the date of death, and failure to do so can lead to legal action and additional charges.
If you give away assets and later need care or assistance, the local authorities may consider this a deliberate deprivation of assets when assessing your eligibility for care funding. In such cases, they may treat the gifted assets as still part of your estate for care cost purposes. It’s important to carefully plan and seek advice if you anticipate needing care in the future.
There are several ways to reduce inheritance tax, including making gifts during your lifetime, leaving money to charity (which may reduce IHT), using the nil-rate band and residence nil-rate band, and setting up trusts. Planning ahead can significantly lower the amount of tax due and working with a financial advisor can ensure you put the right plans in place for your circumstances as part of a wider estate planning exercise.
In simple terms, by placing assets within a trust it transfers them out of your estate and into the ownership of the trustees. This reduces the value of your estate and therefore can reduce your inheritance tax liability.
Selecting reliable trustees is important as they will be responsible for managing the assets of the trust in accordance with its terms and for the benefit of the beneficiaries.
Close friends or family members are often chosen as trustees because they understand the family dynamics and relationships involved.
Yes, having a will is important regardless of the size of your estate. Without a will, your assets will be distributed according to intestacy laws, which may not align with your wishes. A will also allows you to appoint guardians for your children, specify funeral preferences and make charitable donations.
If you lose mental capacity without an LPA in place, your loved ones will need to apply to the Court of Protection to be appointed as your deputy. This process is time-consuming, expensive, and restrictive compared to having an LPA, which allows you to choose a trusted person in advance to manage your affairs if you become unable to do so.
If you die without a will, your estate will be distributed according to the law, known as intestacy rules. This might result in your estate being passed to relatives you wouldn’t have chosen, and it may cause delays and additional costs in the distribution of your assets.
A lasting power of attorney (LPA) allows you to appoint someone to make decisions on your behalf if you lose the ability to do so due to illness or incapacity. There are two types: one for financial decisions and one for health and welfare decisions. Having an LPA in place can avoid the need for someone to apply to the Court of Protection to make decisions for you.
Yes, you can change or update your will at any time, as long as you are mentally capable of doing so. It’s recommended to review your will regularly or after major life events, like marriage, divorce, or the birth of children, to ensure it reflects your current wishes.
You can appoint a trusted family member, friend, or professional advisor to act as your attorney. It’s important to choose someone who is reliable, understands your values, and is capable of managing your affairs. You can also appoint more than one attorney and specify how they should make decisions (either together or separately).
As with all financial planning, there is no one size fits all approach to investment.
How you save and invest your money will depend on your life goals and personal circumstances. We always recommend you seek professional advice before making any investment decisions, however as a general rule, for short-term savings you could consider high-interest savings accounts or Cash ISAs. For long-term growth then investment in stocks and shares, bonds or pension funds may be more suitable.
It is important to balance your risk by having a mixed portfolio covering both the short and longer term.
A common rule is to keep 3–6 months’ worth of expenses in an easy-access savings account for emergencies, then invest any additional funds based on your financial goals and risk tolerance.
Working with a qualified financial adviser will enable you to structure your savings and investments to suit your individual circumstances.
Low-risk options include government bonds (gilts), fixed-term savings accounts and diversified funds. However, all investments carry some level of risk, and inflation can erode the value of cash savings over time.
Yes, open conversations about areas such as wealth transfer, estate planning and financial goals help ensure smooth wealth succession and prevent misunderstandings in the future.
At Digby Associates we regularly provide intergenerational financial advice working together with family members to help them meet their own individual financial goals as well as ensure create a structured financial plan to enable a smooth and tax-efficient transfer of wealth throughout the generations.
Ethical investing involves choosing investments that align with personal values, such as environmental sustainability, social responsibility, and good corporate governance (ESG). Investors can select funds that avoid industries like tobacco, fossil fuels, or arms manufacturing while supporting companies with strong ethical practices.
Most UK taxpayers can invest in an EIS, provided they are at least 18 years old and do not already hold a significant shareholding (more than 30%) in the company they’re investing in. EIS is typically used by individuals with higher net worth or those seeking tax-efficient investment opportunities, but professional advice is recommended to ensure eligibility and suitability.
We have a number of very strong investment processes to accommodate our clients as clearly not everyone is the same.
There has been a substantial increase in clients investing in ESG, ethical and green portfolios. During our initial discussions we would look to establish your desires surrounding your style of investing.
Both at the beginning of the investment journey and throughout we will be analysing your attitude to risk and tolerance to loss. This will ensure we can manage your expectations whilst also making sure you do not invest outside of your comfort zone.
Ethical investing involves choosing investments that align with personal values, such as environmental sustainability, social responsibility, and good corporate governance (ESG). Investors can select funds that avoid industries like tobacco, fossil fuels, or arms manufacturing while supporting companies with strong ethical practices.
Ethical investments can perform competitively, with some ESG funds even outperforming traditional counterparts.
However, performance varies based on market conditions and the specific sectors included or excluded.
The amount varies based on your desired retirement lifestyle, current savings, and expected expenses. A common guideline suggests aiming for a pension pot that provides an income of around two-thirds of your pre-retirement salary.
Typically, you can start withdrawing from private pensions, including workplace and personal pensions, from the age of 55. This age is set to rise to 57 in 2028.
Pension funds are usually invested in a mix of assets such as stocks, bonds, and property. The specific investment strategy depends on your pension provider and chosen plan, with options often ranging from high-risk to more conservative investments.
The treatment of your pension upon death depends on the type of pension and your age at the time of death. For defined contribution pensions, if you die before 75, your beneficiaries can usually inherit the pension pot tax-free. If you die after 75, the inherited pension is subject to Income Tax at the beneficiary’s marginal rate.
Yes, transferring pensions can involve risks such as losing guaranteed benefits, incurring exit fees, or facing potential tax implications. It’s crucial to evaluate these factors and seek professional financial advice before proceeding.
The duration varies but typically takes between four to 12 weeks, depending on the complexity of the transfer and the responsiveness of the involved providers.
Yes, you can transfer your UK pension to a qualifying recognized overseas pension scheme (QROPS). However, it’s essential to ensure the overseas scheme meets HMRC requirements to avoid significant tax charges.
If you have a defined benefit pension worth more than £30,000, it’s a legal requirement to obtain financial advice before transferring. Even for other pension types, seeking professional advice is recommended to understand the potential benefits and risks
You pay a lump sum from your pension pot to an insurance provider, and in return, they provide you with a regular income, either for life or a specified period.
Common types include:
- Lifetime Annuities: Provide income for life.
- Fixed-Term Annuities: Provide income for a set period.
- Enhanced Annuities: Offer higher income based on health or lifestyle
Generally, once an annuity is purchased, it cannot be changed or cancelled. It’s crucial to consider your options carefully before proceeding.
Depending on the annuity type and options chosen, payments may cease, continue to a beneficiary, or provide a lump sum to your estate.
SIPPs allow investments in a wide range of assets, including stocks, bonds, mutual funds, commercial property, and more, depending on the provider’s offerings
Yes, contributions to a SIPP receive tax relief, and investments grow free from UK Capital Gains Tax and Income Tax.
Typically, you can start withdrawing from your SIPP at the age of 55, rising to 57 in 2028
Fees vary by provider and may include setup charges, annual management fees, and transaction costs. It’s essential to review and compare fee structures before choosing a SIPP provider
Typically, SSASs are set up by private and family-run limited companies for the benefit of the company’s directors and senior employees
SSASs offer a wide range of investment opportunities, including commercial property, loans to the sponsoring employer, shares, and other assets, providing flexibility in managing pension funds.
Yes, a SSAS can borrow funds, typically up to 50% of its net asset value, to facilitate investments such as purchasing commercial property.
SSASs offer advantages like greater investment flexibility, the ability to make loans to the sponsoring employer, and potential tax efficiencies, making them appealing to business owners seeking control over their pension funds.
High net worth individuals often need to manage multiple tax liabilities, including Income Tax, Capital Gains Tax (CGT), Inheritance Tax (IHT), and Dividend Tax. Effective planning can reduce overall tax exposure through allowances, reliefs, and strategic tax planning with a qualified financial advisor.
There are several tax-efficient strategies that you could take advantage of depending on your individual circumstances. These could include:
Maximising pension contributions .
Using ISAs, which shelter investments from Income Tax and CGT.
Investing in EIS, SEIS, or VCTs, which offer tax relief.
Structuring your wealth through trusts and family investment companies to protect assets and reduce IHT.
There are a number of different ways to pass on your wealth tax efficiently depending on your individual circumstances and objectives. These could include:
Gifting assets: You can give up to £3,000 per year tax-free, plus larger gifts that are IHT-free after 7 years.
Trusts: Help control wealth distribution while mitigating IHT.
Life insurance policies written in trust to cover IHT liabilities.
There are a number of different ways to structure your investments tax efficiently depending on your individual circumstances and objectives.
A financial advisor will be able to help you to structure your investments as tax efficiently as possible and may suggest strategies such as:
Holding investments in tax-efficient wrappers like pensions, ISAs, and offshore bonds.
Offsetting gains with losses to reduce CGT liabilities.
Rebalancing your investment portfolio strategically to manage your tax liabilities.
There are a number of different strategies to reduce your CGT liability depending on your individual circumstances and objectives.
These could include:
Bed and ISA – selling assets and rebuying them within an ISA to shelter future gains.
Gifting assets to a spouse or civil partner to use both CGT allowances.
Trusts and Family Investment Companies (FICs) to structure wealth tax-efficiently.
Using EIS & SEIS schemes, which offer CGT relief for investments in early-stage companies.
Working with a financial advisor could identify potential strategies for your specific circumstances and financial objectives.
Private Residence Relief (PRR) usually exempts your main home from CGT. However, if you own multiple properties or let out part of your residence, partial CGT may apply.
Working with a financial advisor to ensure you structure your assets can help to mitigate any CGT liability.
For the 2023/24 tax year, UK CGT rates are:
Shares & investments: 20% for higher and additional rate taxpayers.
Property (excluding main residence): 24% for higher and additional rate taxpayers.
The annual CGT allowance is £6,000 (reducing to £3,000 in 2024/25), meaning gains below this amount are tax-free.
There are a number of different factors that determine how much you can borrow.
Income-Based Calculations: Lenders typically offer 4-4.5 times your annual income, although some may offer up to 5 times depending on the lender and your financial profile.
Affordability and Expenses: Beyond income multiples, lenders assess affordability based on your income, credit history, existing debt, and monthly expenses. They’ll also consider lifestyle costs (e.g., childcare or travel) to gauge your ability to meet repayments.
Deposit Size: A larger deposit can increase your borrowing power and often leads to better rates.
Our team of experienced mortgage advisors will help you to calculate the amount you can borrow taking all of these into considerations. Get in touch today to arrange a no obligation appointment.
There are a range of different types of mortgages available in the market. These include repayment mortgages where you repay both the interest and the amount borrowed, interest only mortgages where your monthly repayments only cover the interest on the loan.
Mortgage rates can be fixed for a period of time, or variable and move in line with interest rates. There are also flexible mortgage products for those with variable incomes that might want to make over payments or offset mortgages that enable you to offset savings against the amount borrowed.
Choosing the best mortgage type for you depends on factors like how long you plan to stay in the property, income stability and your tolerance for risk. Our experienced team of mortgage advisors can offer tailored advice on the most suitable product based on your circumstances.
In short, yes you can.
Depending on whether you are self-employed or a Director of a Limited Company will determine the choice of lenders available to you, their lending criteria plus the documentation you will need to provide as part of the process.
You may find that some lenders don’t have an appetite for this type of lending, however there are also specialist lenders available.
Working with a specialist mortgage broker can help to ensure you find the right mortgage provider and product to meet your individual circumstances.
Yes there are a number of different ways to help your children or grandchildren get onto the property ladder.
These include:
- Joint Borrower Sole Proprietor Mortgages: This allows you to contribute to the mortgage payments without being on the property deeds, which helps with affordability assessments.
- Guarantor Mortgages: With these, you guarantee the mortgage with your own income or assets, which can help them qualify. However, this carries risk if they miss payments, as you are financially liable.
- Family Offset Mortgages: These let you use savings to offset the mortgage balance, reducing monthly payments or interest without handing over the money directly.
- Gifting a Deposit: You can gift your child/grandchild a deposit, which can increase their borrowing potential and reduce the mortgage size.
Deciding which option is best will depend on your individual circumstances and we would recommend obtaining advice to ensure you are aware of any implications on your own financial affairs.
Again there are a number of different ways to raise funds against your home, which one is the best option for you will depend on your personal circumstances. Options include:
- Remortgaging: This is one of the most common methods, where you take out a new mortgage that’s larger than your existing balance. You can use the extra funds for other purposes, like home improvements, consolidating debt, or investments.
- Equity Release: If you’re over 55, you might consider a lifetime mortgage or home reversion plan. Equity release allows you to access cash tied up in your home without selling, but it may affect inheritance and could have interest that compounds over time. Find out more about Equity Release here.
- Further Advance: You could ask your current mortgage provider for an additional loan, which is usually secured against your home but may have different terms and interest rates.
Our team of qualified mortgage advisors can help you to understand the best way to raise funds against your home depending on your individual circumstances. Get in touch today for a no obligation conversation.
Generally you can make overpayments on a mortgage, however you should always consult your lender or mortgage broker in advance as there may be specific terms and conditions on how overpayments are handled by the lender depending on the type of mortgage you have.
The amount you can raise through equity release depends on several factors, including the value of your home, your age, and the type of equity release plan you choose. Generally, the older you are, the more equity you may be able to access. To get an accurate estimate tailored to your situation, our advisors at Digby Associates are fully qualified to guide you through the process. Contact us today for expert advice on how much equity you could release.
Yes, with most equity release plans, such as a lifetime mortgage, you remain the owner of your home. The plan allows you to live there for as long as you wish, while the loan and interest are repaid when the property is sold (usually upon your passing or moving into long-term care). At Digby Associates, our advisors specialize in equity release and can help you understand how it works and whether it’s the right choice for you. Get in touch for tailored advice.
Yes, you can still take equity release if you have an existing mortgage, but you’ll need to use some of the funds from the equity release to pay off the remaining mortgage balance. This is a common scenario, and our experienced advisors at Digby Associates are here to help you navigate this process smoothly. Reach out to us for personalized guidance.
Yes, many equity release plans offer the flexibility to move to a new property, as long as the new home meets the lender’s criteria. This means you can still relocate in the future if needed. Our qualified advisors at Digby Associates can explain how moving with an equity release plan works and help you find a plan that suits your lifestyle. Contact us to learn more.
It is possible to leave an inheritance, depending on the type of equity release plan you choose. Some plans allow you to ring-fence a portion of your home’s value for inheritance purposes. Additionally, repaying the loan early or managing how much equity you release can also help preserve your estate. At Digby Associates, our expert advisors are equipped to help you explore options that align with your goals, including leaving an inheritance. Get in touch for advice tailored to your needs.
Having savings or life assurance is a great safety net, but it’s essential to consider whether they’re enough to cover your mortgage in full if the unexpected happens. Life assurance policies often cover broader needs, such as supporting your family’s living expenses, while savings may not be enough to manage a large financial commitment like a mortgage. Mortgage protection insurance is specifically designed to ensure your home is paid off, giving you and your loved ones dedicated peace of mind.
The cost of mortgage protection insurance varies depending on factors such as your age, health, the amount of cover you need, and the length of your mortgage term. On average, premiums are affordable and can often be tailored to fit within your budget. It’s worth getting a personalized quote to understand your exact costs and compare options that best suit your circumstances.
If you sell your house or move, most mortgage protection policies can be adjusted or transferred to cover your new mortgage. However, the specifics depend on your provider and the type of policy you have. It’s a good idea to review your policy with your insurer or broker when planning a move to ensure your coverage continues to meet your needs.
Life assurance provides a lump sum to your loved ones if you pass away, helping to cover debts like a mortgage or provide financial security. Critical illness cover, on the other hand, pays out if you’re diagnosed with a specified serious illness, offering financial support for treatments, living expenses, or lost income while you recover. Both serve different purposes but can complement each other for comprehensive protection.
Yes, having a medical condition doesn’t automatically prevent you from getting mortgage protection insurance. Providers may ask for details about your health and may offer coverage with adjusted premiums or specific exclusions. It’s a good idea to speak with a broker or specialist who can help find the right policy for your circumstances.
The required coverage of protection will depend on factors such as outstanding debts (e.g., mortgage), future family expenses and your income. Our financial advisers will work with you to understand your specific circumstances and help you determine an appropriate level of cover.
Yes, it’s possible to hold multiple policies to cover different needs, such as a mortgage protection and family income protection.
Generally, payouts are tax-free. However, placing the policy in trust can help avoid potential inheritance tax implications.
Standard policies typically cover death from illnesses and accidents but may exclude certain circumstances like dangerous sports or activities. You will need to disclose any such activity when you make your application for the cover.
Income protection policies typically cover between 50% to 70% of your gross income.
No there is an initial deferred period which can range from a few weeks to several months and which you can select when you set up the policy. Payments will begin after the deferred period until you return to work, reach retirement age of the end of the policy term.
Yes income protection is available to self-employed individuals, providing financial support if you are unable to work due to ill- health or injury.
No, critical illness cover provides a payout upon diagnosis of a covered illness, whilst life assurance pays out upon death.
Many insurers offer combined policies, allowing you to add critical illness cover to your life insurance.
It depends on your specific circumstances and the insurer but typically, pre-existing conditions are excluded meaning claims related to them may not be paid.
Payments continue for the remaining term of the policy which you elected when you took out the policy.
Generally, the payments are tax-free for the beneficiaries.
